(10 pts)Problem 1

A consumer group, concerned about the mean fat content of a certain grade of steakburger
submits to an independent laboratory a random sample of 12 steakburgers for analysis. The
percentage of fat in each of the steakburgers is as follows.

21 18 19 16 18 24 22 19 24 14 18 15
The manufacturer claims that the mean fat content of this grade of steakburger is less than
20%. Assuming percentage fat content to be normally distributed with a standard deviation
of 3, carry out an appropriate hypothesis test in order to advise the consumer group as to
the validity of the manufacturer’s claim. Use the critical value method with = 0:05:
(a) Write the claim mathematically and identify H0 and Ha :
(b) Find the critical value(s) and identify the rejection region(s).
(c) Decide whether to reject or fail to reject the null hypothesis.
Solution
(a)
H0 : 0:2 and Ha : < 0:2 (claim) (2pts)

(b) = 0:05; CV = 1:645; Rejection region is Z < 1:645

(4pts)
(c)

(4pts)

1
(5pts) Problem 2
In an advertisement, a pizza shop claims that its mean delivery time is less than 30 minutes.
A random selection of 36 delivery times has a sample mean of 28.5 minutes and a standard
deviation of 3.5 minutes. Is there enough evidence to support the claim at = 0:01: Use a
P-value.
(a) Identify the claim. Then state the null and alternative hypotheses.
(b) Find the P-value.
(c) Decide whether to reject the null hypothesis.

Solution
(a) Claim: < 30:

H0 : 30 vs Ha : < 30

(b)

P-Value = the area to the left of z = 2:57

= 0:0051 (3pts)

(c) Reject H0 because

0:0051 < 0:01: (2pts)

2
(10pts) Problem 3
An environmentalist estimates that the mean waste recycled by adults in the United States is
more than 1 pound per person per day. You want to test this claim. You …nd that the mean
waste recycled per person per day for a random sample of 12 adults in the United States is
1.46 pounds and the standard deviation is 0.28 pound. At = 0:05 can you support the
claim?
(a) Write the claim mathematically and identify H0 and Ha :
(b) Find the critical value(s) and identify the rejection region(s).
(c) Decide whether to reject or fail to reject the null hypothesis.

Solution
(a)
(2pts)
(b) Sample size less than 30, we use a t-test.

(3pts)

(c)
X 1:46 1
t= = = 5:691 (2pts)
ps 0:28
p
n 12

5.691 is in the rejection region, we reject the null hypothesis.At the 5% signi…cance level,
there is su¢ cient evidence to support the environmentalist’s claim that the mean waste
recycled by adults in the United States is more than 1 pound per person per day . (3pts)

3
(10pts)Problem 4
A sporting goods manufacturer claims that the variance of the strength in a certain …shing
line is 15.9. A random sample of 15 …shing line spools has a variance of 21.8. At = 0:05
is there enough evidence to reject the manufacturer’s claim? Assume the population is
normally distributed.
(a) Identify the claim and state H0 and Ha :
(b) Identify the level of signi…cance and the degrees of freedom d.f. Find the critical values
and identify the rejection regions.
(c) Decide whether to reject the null hypothesis.

Solution
(a)

(2pts)
(b)

(4pts)

(d)

(4pts)

4
(10pts)Problem 5
A police chief claims that the standard deviation in the length of response times is less
than 3.7 minutes. A random sample of 9 response times has a standard deviation of 3.0
minutes. At = 0:05 is there enough evidence to support the police chief’s claim? Assume
the population is normally distributed.
(a) Identify the claim and state H0 and Ha :
(b) Identify the level of signi…cance and the degrees of freedom d.f. Find the critical values
and identify the rejection regions.
(c) Decide whether to reject the null hypothesis.

Solution
(a)
(2pts)
(b)
df = 8; (4pts)
(c)
2
= 5:259 which is in the non-rejection region. Fail to reject H0 : (4pts)

5
(15pts)Problem 6
A marketing manager conducted a study to determine whether there is a linear relationship
between money spent on advertising and company sales. The data are shown in the table
below.

(1) Calculate the correlation coe¢ cient for the advertising expenditures and company sales.
What can you conclude?
(2) Test the signi…cance of this correlation coe¢ cient. Use = 0:05:( State the null and
alternative hypotheses, specify the level of signi…cance, identify the degrees of freedom,
determine the critical values and the rejection regions, make a decision the signi…cance of
this correlation coe¢ cient).
(3) Find the equation of the regression line for the advertising expenditures and company
sales.
(4) Construct a 95% prediction interval for the company sales when! the advertising expenses
X
are $2100. What can you conclude ? (yi y^i )2 = 635:3463
i

Solution
(1)

(3pts)

6
(2)

(5pts)

(3)

(3pts)

7
(4)

(4pts)

8
(10pts) Problem 7
A survey indicates that the mean per capita credit card charge for residents of New Hamp-
shire and New York is $3900 and $3500 per year, respectively. The survey included a ran-
domly selected sample of size 50 from each state, and sample standard deviations are $900
(NH) and $500 (NY).The two samples are independent. At = 0; 01 is there enough evi-
dence to conclude that there is a di¤erence in the mean credit card charges?
(a) Write the claim mathematically and identify H0 and Ha :
(b) Find the critical value(s) and identify the rejection region(s).
(c) Decide whether to reject or fail to reject the null hypothesis.

Solution
(a)

(2pts)
(b)

(4pts)
(c) zscore = 2.747 which is in the rejection region. Reject H0 : At the 1% signi…cance level,
there is enough evidence to support the claim that there is a di¤erence in the mean per
capita credit card charges for residents of New Hampshire and New York (4pts)

9
 (10pts) Problem 8
The braking distances of 8 Volkswagen GTIs and 10 Ford Focuses were tested when traveling
at 60 miles per hour on dry pavement. The results are shown below. Can you conclude that
there is a di¤erence in the mean braking distances of the two types of cars? Use = 0:01:
Assume the populations are normally distributed and the population variances are not
equal.

(a) Write the claim mathematically and identify H0 and Ha :

(b) Find the critical value(s) and identify the rejection region(s).
(c) Decide whether to reject or fail to reject the null hypothesis.

Solution
(a) You want to test whether the mean stopping distances are di¤erent. So, the null and
alternative hypotheses are

(2pts)

(b)

(4pts)

(c)

(4pts)

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(10pts) Problem 9
You want to purchase stock in a company and are deciding between two di erent stocks.
Because a stocks risk can be associated with the standard deviation of its daily closing
prices, you randomly select samples of the daily closing prices for each stock to obtain the
results shown below. At = 0:05 can you conclude that one of the two stocks is a riskier
investment? Assume the stock closing prices are normally distributed.

(a) Write the claim mathematically and identify H0 and Ha :

(b) Find the critical value(s) and identify the rejection region(s).
(c) Decide whether to reject or fail to reject the null hypothesis.

(2pts)

(4pts)

(2pts)
The graph shows the location of the rejection region and the test statistic. Because F is in
the rejection region, you should reject the null hypothesis.
Interpretation There is enough evidence to support the claim that one of the two stocks
is a riskier investment. (2pts)

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(10pts) Problem 10
The times required by three workers to perform an assembly-line task were recorded on …ve
randomly selected occasions. Here are the times, to the nearest minute.

At the 5% signi…cance level, does there appear to be a di¤erence in mean time among the
three workers?
Note that

X1 = 9:6; X2 = 8:8; X3 = 9:8; S12 = 1:3; S22 = 0:7 and S32 = 0:7:

Solution
m = 3 and n = 5: (2pts)

X
3
S2 1:3 + 0:7 + 0:7
i
nS 2 = 1:4; = = 0:9 (2pts)
i=1
3 3

nS 2 1:4
T S = P3 S 2 = = 1: 555 6: (2pts)
i 0:9
i=1 3

F2;12;0:05 = 3:885 (2pts)

T S < F2;12;0:05
Fail to reject. At the 5% signi…cance level, not enough evidence that there is a di¤erence in
mean time among the three workers. (2pts)

12